$200k Fine by U.S – SEC
EZTD Inc. (formerly known as EZTrader Inc) has received and order to pay a $200,000 fine and also been ordered to forfeit $1.5 million. The fines were made by the SEC – US Securities and Exchange Commission which is known to give out more than slaps on the wrist to unregulated EU brokers dealing with U.S clients. EZTD Inc is a publicly traded company (see bloomberg.com, nytimes.com, google.com, reuters.com) and is also licensed and regulated by the Cypriot regulator CySEC. The CySEC website seems to be down at the moment so we are unable to post a screenshot or link of EZTD Inc. license.
Apparently, up until January of this year, EZTD Inc. was soliciting clients from the USA without an SEC or CFTC license, for this they are being ordered a $200K fine. EZTD Inc. has also been accused of using “misleading practices” towards USA investors and is being ordered to forfeit $1.5 million in revenues obtained from US customers. The U.S SEC against EZTD Inc. charges, fine and forfeit order have made the news on ww2.cfo.com, razor-forex.com, financemagnates.com, atozforex.com, smnweekly.com, greatbritain.com, reuters.com and investing.com!
The U.S SEC – Securities and Exchange Commission has also posted a press release and an ADMINISTRATIVE PROCEEDING PDF document in the matter of EZTD Inc. on their website:
- Press Release – Firm Charged With Misleading Investors About Binary Options Profitability
- PDF – ADMINISTRATIVE PROCEEDING, UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION
EZTD Inc. runs three online trading platform brands:
As it seems, all 3 of the EZTD Inc. brands, companies and subsidiaries are owned and operated by Israeli businessmen and entrepreneurs. Their main website domain is “http://eztd.info/”. The fine and forfeit order do not come as a surprise. The US regulators are known for playing hard ball and seeking out brokerages from around the world and pressing charges against them. We do not yet understand the legal proceedings of matters like these but we can be sure that Israeli EZTD Inc. will probably be paying the fine and forfeiting the money obtained from 4,000 US customers instead of trying to start a legal fight with one of the biggest financial watchdogs in the world.
What are These Links on the eztd.info Website?
eztd.info Website – Investor Information Page – 2 Links to sec.gov Website
If you go to eztd.info, the main EZTD Inc. website, on the “Investors Information” page there are two small links that bring you to the sec.gov website, named SEC and XBRL. These pages on the sec.gov website seem to be Documents, Entity information and company filings of EZTD Inc. on the U.S – SEC regulator website. It is very interesting that EZTD Inc. has been filing documents and data and even made a registration request with the SEC back in 2014.
This is the first time that we have seen proof that an EU regulated binary options broker has been officially corresponding and filing documents with a US financial regulator.
Does the Defendant Get To Say Anything?
Usually, as legally and morally required by any democracy, any person or entity being charged has the right to defend themselves right? In cases like these we usually won’t be hearing any official press release made by EZTD Inc. where they give us their side of the story. This is the main issue and problem with these kinds of matters.
Can any overseas (non USA) company or entity being charged with a fine by the U.S SEC even have a chance, in the public eye at least, of clearing their name? As we certainly will not be hearing from EZTD Inc. any time soon – we will have to just wait and see if they settle with the SEC and agree to pay the fine and forfeit charge.
It is worrying though that we (the public) only get to see the information posted by the regulator and fed to us by the news and media in these matters. It is a pity that in financial matters such as these, we do not get to have the moral privilege of hearing anything from the accused, the defendant, as western life and democracy permits and even constitutes.
Let Us Take a Deeper Look
There are many online public complaints boards and forums, namely the “Forex Peace Army” website that is marketed as the #1 place to get unbiased broker info. On the “Forex Peace Army” website their is a section dedicated to trader complaints, reviews and comments about “EZTrader.com” which is one of the EZTD Inc. brands. There is even one FPA “resolved court case” regarding EZTrader.com where the scam case is filed as “resolved” – meaning that the broker and trader came to an agreement.
In the 2015 FPA “court case” we learn only more bad news about the broker. In 2014 CySEC temporarily suspended EZTraders license and the forum thread shows many traders and FPA moderators that believe EZtrader is guilty. The trader named “top1000” ends up posting in the FPA scam case “good news my case is solved with eztrader so happy time” and later updating that “the money arrived today on my bank account, so my problem is fixed“. You can read the whole thing on the FPA website here. The comments on the EZtrader.com review page on FPA website are also very negative and the broker received a rating of 1.385 out of 5 from the anonymous traders who use the FPA website.
Broker Pays Back Client Who Complained
It seems that it took the anonymous trader named “top1000” around 4 months until he was payed back by EZtrader. This at least gives a few points to the broker, the fact that the broker has payed back a clients who filed a public and anonymous online complaint is a good thing. In the online arena where people using anonymous forum profiles make a scam complaint and then claim to have been payed back by the broker we can only speculate if the whole ordeal is in reality as it seems, but it still is a sign that the broker is not a %100 crook.
Patiently Hoping for a Press Release by EZTD Inc.
Even though it will probably not happen, we are still hoping to read a future public post or press release made by EZTD Inc. in order to hear their side of the story. If they do make a public post or press release in the near future, it will show that they are probably not fraudsters as they have been made to be, it will also give them some extra points for giving the public their side of the story, in our opinion.
If anyone from EZTD Inc. is reading this, we would love to hear your side of the story and even post it on our website, contact us at firstname.lastname@example.org – if you are a US trader that has been defrauded by an overseas binary options broker you should make a complaint.
US traders should only trade with USA regulated binary options brokers in order to stay on the safe side.